U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20087 / April 24, 2007
Securities and Exchange Commission v. International Fiduciary Corp., S.A., et al., U.S. District Court for Eastern District of Virginia (Civil Action No. 1:06CV1354)
SEC Amends Complaint in Alleged International Fiduciary Corp. Prime Bank Ponzi-Scheme Case
The Securities and Exchange Commission announced today that on April 19, 2007, it filed an amended complaint adding certain relief defendants and alleging additional details concerning the fraudulent investment program alleged in its original complaint. According to the original complaint, filed on December 4, 2006, defendants International Fiduciary Corporation, S.A. ("IFC"), Preston David Pinkett II, Daniel Eric Byer, and Malcolm Cameron Boyd Stevenson raised at least $18.2 million through a fraudulent "asset growth program" purportedly involving risk-free participation in the trading of "1st tier medium-term bank notes."
The amended complaint adds as relief defendants two individuals, Terry Martin and Robert Lowrey, both residents of Canada, as well as four Washington State-based companies: CD2E, Inc., M&M Technologies, and Winchell Corporation-each of which the amended complaint alleges Martin controls-and SZE Coast Operating Corporation, which the amended complaint alleges lists Lowrey as its Secretary. According to the amended complaint, defendant IFC, at the direction of defendants Pinkett, Byer, and Stevenson, paid these relief defendants, collectively, at least $1.9 million. The complaint does not allege that these relief defendants engaged in any violations of the federal securities laws, but rather that they hold or control funds that represent fruits of violations committed by the other defendants.
The amended complaint also alleges additional details concerning the fraudulent "asset growth program" alleged in the original complaint, including:
The Commission wishes to acknowledge the continuing assistance of the British Columbia Securities Commission. For further information, see Litigation Release No. 19934 (December 5, 2006).